Bitcoin Drops Below $77K as Oil Shock, Yields Hit Risk Assets
Bitcoin slipped under $77,000 as a spike in oil prices and rising Treasury yields pressured risk assets, though long-term holders remain resilient.
Bitcoin fell below $77,000 for the first time in weeks as a sudden spike in oil prices and a sharp rise in US Treasury yields triggered a broad sell-off in risk assets.
The drop came as crude oil surged on supply disruption fears, pushing the 10-year Treasury yield above 4.5% and strengthening the US dollar. Higher yields and a stronger dollar typically drain liquidity from speculative markets like cryptocurrencies, as investors rotate into safer, income-generating assets. Bitcoin's decline mirrored losses in equity markets, with the S&P 500 also sliding. On-chain data from Binance Research shows that long-term holders have not budged, and exchange balances remain near six-year lows, suggesting that the selling pressure is coming from short-term speculators. However, the large number of underwater short-term holders makes Bitcoin vulnerable to further macro shocks. For the latest price action, traders can check NowPrice's crypto page for real-time Bitcoin and altcoin quotes.
Looking ahead, the key focus will be on whether oil prices stabilize and if the Federal Reserve signals any shift in policy. The next US CPI report and Fed minutes later this week could provide clues on the interest rate path. A break below the $75,000 support level could accelerate selling, while a recovery above $80,000 would signal renewed bullish momentum. Traders should also monitor Bitcoin dominance and exchange reserve data for signs of accumulation or distribution.